THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board of County Commissioners' Value of "Ensuring economic opportunities for Broward’s diverse population and businesses" and Goal to "Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
Seabulk Towing, Inc. d/b/a Seabulk Towing of Port Everglades (Seabulk) and/or its predecessors have provided tugboat and towing services at Port Everglades since 1958. Initially the company operated under a permit issued by the Port Everglades Authority. After Port Everglades became a part of Broward County in 1994, and per Administrative Code requirement, Seabulk obtained the required franchise to operate at the Port. On September 11, 2007 (Item No. 53-PH), the Broward County Board of County Commissioners (Board), approved a new franchise for a ten-year term commencing October 29, 2007, and ending October 28, 2017, following the expiration of the franchise of its predecessor Seabulk International, Inc., on October 28, 2007. Seabulk is requesting renewal of the franchise for a ten-year term.
Seabulk, a Delaware corporation, has been authorized to transact business in the State of Florida since January 2, 1987. Seabulk separately leases from the County its office headquarters and maintenance facility building located at Berth 27 in Port Everglades. Docking space is currently provided at Berth 28A for Seabulk’s fleet of tugboats. Under the term of the proposed ten-year franchise agreement, and in recognition of the provision of suitable dock space, Seabulk is required to operate a minimum of three modern harbor tugboats equipped with firefighting apparatus, which will provide efficient and satisfactory tugboat and towing services and firefighting capabilities at Port Everglades. The company will continue to operate the tugboat and towing service at Port Everglades on a 24-hour per day basis and will pay 5% of its revenues net of its discounts derived from its franchised operations at Port Everglades.
Port staff has reviewed the application pursuant to the Broward County Administrative Code and has determined that the applicant meets the criteria for renewal. Staff’s due diligence included corresponding with the applicant's representative to clarify franchise requirements, and reviewing the applicant's corporate status, business history/experience, litigation history, insurance, financial documents and creditworthiness, required licenses, company programs and policies, and statement of intended activities. In addition, the applicant’s environmental history was reviewed and findings are included under Section Q of the application. One warning in lieu of civil penalty was issued to Seabulk by the United States Coast Guard (USCG) on October 2, 2016. The warning stemmed from the discharge of 0.1 gallon of diesel into the Intracoastal Waterway, when one of the fuel tanks burped diesel onto the deck of the MV Hawk during fueling operations at Port Everglades. The transfer operation was secured and the USCG officer verified at the scene that the crew was following the transfer procedures properly. The case was closed on November 19, 2016.
Based on the information provided in the application and staff’s review, staff has determined that the applicant meets the criteria for renewal of a tugboat and towing service franchise as set forth in Chapter 32.20 of the Broward County Administrative Code. Staff feels that the applicant acted promptly and responsibly to resolve the incident documented in Section Q of the application. Tugboat and Towing Franchises may be issued for any period of time up to ten years. Accordingly, staff is recommending that the franchise renewal be approved for a ten-year term.
The franchise agreement has been reviewed by the Port Everglades' Risk Manager and approved as to form by the Office of the County Attorney. The complete application and supporting documents are on file in the Port Everglades Business Administration Office.
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